International Coalition Pledges $170 Million to Bolster Palestinian Authority Finances
New York – A coalition of twelve nations,including France,Belgium,Denmark,Iceland,ireland,Norway,Slovenia,and Switzerland,has formed to provide critical financial support to the Palestinian Authority,with initial pledges totaling at least $170 million. The move comes amid escalating concerns over the Palestinian Authority’s economic stability, exacerbated by Israel’s withholding of tax revenues following the October 7th Hamas attack.
This international effort aims to alleviate a deepening financial crisis that threatens essential services and fuels poverty within Palestinian territories. The Palestinian Authority relies heavily on tax revenues collected by Israel, as stipulated in the 1994 Paris Protocol, but these funds have been largely frozen, leading to a severe economic downturn.The coalition’s intervention seeks to prevent a complete collapse of Palestinian governance and mitigate the humanitarian consequences of prolonged financial strain.
saudi Arabia will contribute $90 million to the fund, as announced by its Minister of Foreign Affairs, Prince Fayçal Ben Farhane, on Thursday evening. Palestinian Prime Minister Mohammad Moustafa’s office confirmed the donor commitments.
The withholding of funds by Israel began after the October 7th incursion by Hamas into israeli territory. Israeli authorities maintain that retained revenues partially offset expenses such as electricity provided to Palestinians. However,far-right Finance Minister Bezalel Smotrich,who halted all payments to the palestinian Authority four months ago,has openly advocated for the Palestinian government’s collapse thru what he termed an “economic strangulation”-a strategy intended to obstruct the establishment of a Palestinian state.
Smotrich’s stance has drawn criticism, particularly as a growing number of Israel’s traditional allies, including France and the United Kingdom, recently signaled their support for Palestinian statehood through votes at the united Nations General Assembly this week in New York. the coalition’s financial pledge represents a direct response to the deteriorating economic situation and a countermeasure to policies perceived as deliberately undermining Palestinian self-governance.